Treasury closes in on profits sent abroad

GEORGE OSBORNE is considering closing a loophole that allows global companies
to shift billions of pounds into havens to sidestep British tax.

The move would hit multinational groups such as Apple, Amazon, Google and
Facebook, which have provoked public anger by using complex networks of
overseas subsidiaries to move revenues out of the reach of the taxman.

The chancellor announced at the G20 meeting of finance ministers in Moscow
yesterday that Britain would lead an international effort to tackle
corporate tax avoidance.

“We want businesses to pay the taxes that we set in our countries. And that
cannot be achieved by one country alone,” he said.

The Treasury said all options for reform would be on the table, including
controversial proposals that would allow Britain to tax its share of global
profits even if a firm was located in a lower-tax country such as Ireland or
Luxembourg.